The gross receipts tax income the city received in May comes from activity in March.
According to a report from city Financial Services Director Olivia Padilla-Jackson, the $119,000 in gross receipt tax money the city received last month from the manufacturing sector is the highest on record, far surpassing the monthly average of $34,000.
City spokesman Peter Wells said because of taxpayer confidentiality, the state doesn’t provide the city with information to know why the record-breaking income occurred or what entity or entities were responsible. Without that information, city financial services employees also can’t predict whether the record is an aberration or the beginning of a trend.
“We’ve had some significant growth, according to our retention and expansion program,” said Rio Rancho Economic Development Corporation Executive Director Noreen Scott.
Scott said Inside Lighting, Electrosonics and Stainless Motors probably play a significant role in boosting the manufacturing sector, but even the smaller companies are expanding. The city’s investment in economic development is continuing to pay off, she added.
In her report, Padilla-Jackson said the health care sector had been outperforming other sectors, but the manufacturing sector has now surpassed the health care sector in growth in dollars for this fiscal year. Still, the health care and social assistance sector, combined with the medical hold-harmless distribution from the state, still makes for the strongest performance in gross receipts tax revenue.
The hold-harmless distribution covers the financial loss to the city from the gross receipts tax on medical services being removed, but the most recent state budget calls for it to be phased out, starting in two years.
In all sectors combined, the city received almost $2.3 million in gross receipts revenue in May, well up from $1.6 million in April, the poorest reported for the fiscal year.
Overall, the city’s gross receipts tax income for May was 10 percent higher than in May 2012, according to Padilla-Jackson’s report. However, the total GRT revenue for the fiscal year so far is 2.7 percent lower than last fiscal year’s total at this point.
For the fiscal year, the construction sector has experienced the largest decline, but the drop is lessening. The sector is down 22 percent now, compared to being down 35 percent in November, according to the report.
The retail, finance and insurance, utilities and educational services sectors have all declined compared to the same period last fiscal year, according to Padilla-Jackson’s report. However, the accommodation and food services sector is up 3.4 percent so far this fiscal year. Padilla-Jackson called that performance strong.